Commissioner IR empowered to make recovery in cases before appellate tribunal


ISLAMABAD: Commissioners Inland Revenue (IR) have been empowered to recovery disputed amount after expiration of 180 days stay granted by appellate tribunal, said Federal Board of Revenue (FBR) in its explanation to changes made in Finance Act, 2018.

It said that the Appellate Tribunal, in terms of sub-section (5) of section 131 of the Income Tax Ordinance, 2001 may, in cases of undue hardship and pursuant to provision of opportunity of being heard to the Commissioner grant stay against recovery of tax which has been upheld at the level of the Commissioner (Appeals) for a period not exceeding 180 days in aggregate.
Through the Finance Act, 2018 a new proviso has been inserted in sub-section (5) of section 131 of the Income Tax Ordinance, 2001 wherein the Commissioner has been empowered and accorded the mandate to recover the tax demand stayed by the Tribunal pursuant to the lapse of stay accorded by the Appellate Tribunal Inland Revenue for a period aggregating 180 days.
In other words the stay accorded by the Tribunal shall automatically cease to have effect upon the expiration of 180 days following the date on which the stay order was made and the Commissioner shall have to right to effect recovery of tax [upheld at the level of the Commissioner (Appeals)] in respect of a taxpayer whose appeal is still pending adjudication before the appellate Tribunal.

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